Sunday, 25 October 2009

Dubai Government Sets Up $6.5 Billion Medium-Term Note Program

The Dubai government set up a $6.5 billion program to sell medium-term notes as the emirate plans its first international bond sale since June 2008, according to two investors who attended a marketing meeting in Dubai today.

The sale of Islamic bonds and those that don’t comply with Muslim banking rules may take place as soon as next week, said the investors who didn’t want to be identified as the meetings are private. The sheikhdom is targeting investors in the Middle East, Asia and Europe. The offering is separate from a $10 billion fund-raising program, which is part of a $20 billion support fund that the Dubai government set up for state-related companies.

The bonds include a $4 billion euro-note program, according to a prospectus seen by Bloomberg. Dubai also established a $2.5 billion program to sell Islamic bonds, or sukuk, according to the two investors.

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